Lincoln's change to bill would help Ark. bank: report

By IBT Staff Reporter On 06/23/10 AT 9:40 AM

Blanche Lincoln, one of the influential U.S. senators spearheading financial reform, is pushing for a change in the proposed bill to benefit a bank predominantly owned by the Walton family of Wal-Mart Stores Inc, the Wall Street Journal said.

Arvest Bank Group Inc of Bentonville, Arkansas, would be the only bank benefiting in the Lincoln's home state, the Journal said.

Under Lincoln's proposed change, Arvest would be excused from a provision that could require banks to raise more capital, in its case about $115 million, the newspaper said.

Other Senate Democrats had intended only to exempt banks with less than $10 billion in capital from the provision.

However, Lincoln wants to raise that to $15 billion, a threshold that would exempt Arvest, the paper said.

The Journal also said some banks in other states might also benefit from Lincoln's proposal.

A spokeswoman for Lincoln told the Journal that she was pushing the change to make sure no Arkansas bank -- no matter its owner -- is punished by the provision.

The spokeswoman told the paper that Lincoln did not discuss the issue with anyone from the Walton family, but did meet with Arvest officials.

Arvest declined to comment to the paper. Reuters could not immediately reach representatives for Lincoln and Arvest outside U.S. business hours.